What is the procedure to correct overspending in grant and contract accounts?
Overspending refers to spending in excess of the total account budget. Usually, financial control systems prevent overspending; this is a discussion of a procedure for the rare occasions when it happens despite control systems. Overspending must be corrected by charging the overexpenditure to some other appropriate account that has a budget balance available. For example, salary and fringe benefit costs within the present fiscal year can be recast to another account that benefited from the labor. A cost transfer (journal voucher) can be used to move other kinds of costs from an overexpended account. Overexpenditures should be removed immediately when they are detected, but they must be cleared when an account is closed after its end date. There is an order of precedence for accounts that might be used to take expenses from an overexpended grant or contract account. Another account of the person responsible for the overexpended account is the highest priority target for a remedial cost
